In his first public statement on the cryptocurrency controversy that has shaken Argentina, President Javier Milei denied any wrongdoing, addressing accusations and public outrage surrounding the Libra token scandal.
Milei confirmed his meeting with those behind the creation of the so-called “memecoin” but clarified that he never intended to encourage people to invest in it. Instead, he said his goal was to raise awareness about the potential of cryptocurrency to support Argentine businesses.
“I’m not an expert. My specialty is economic growth, with or without money,” Milei explained during an interview with Todo Noticias on Monday. “As a technology enthusiast, I saw an opportunity to help entrepreneurs finance their projects, so I shared the information.”
The Libra Token Controversy
The controversy began when Milei publicly shared information about Libra on his social media channels. Within hours, the token’s value surged dramatically, increasing more than fourfold and reaching a total value of $4 billion. However, this spike was followed by a rapid crash, leading to significant losses for speculators.
As the situation unfolded, Milei’s critics intensified their calls for his impeachment, citing concerns about his involvement. The Argentine government launched an internal investigation, while the incident became the most significant political crisis of Milei’s presidency.
Government Response and Market Reaction
Initially, the presidential palace remained silent on the matter, prompting Economy Minister Luis Caputo to step in. Caputo downplayed the incident, describing the cryptocurrency world as a niche, complex area that many, including himself, struggle to understand. He emphasized that Milei had no criminal intent and had made an unintentional mistake.
“This is a tiny, almost invisible world,” Caputo remarked. “I don’t understand crypto either, and it’s been explained to me multiple times.”
Despite Caputo’s assurances, the incident had a significant impact on the markets. The S&P Merval Index, which tracks Argentina’s stock market, dropped by 5.6% on Monday, marking its largest single-day decline since July. Argentine investors also expressed concern about the long-term effects on the country’s economy.
Political Fallout and Calls for Accountability
Milei’s critics were quick to seize on the issue, with opposition leaders calling for an impeachment trial. However, such a trial would require a two-thirds majority in Congress, making it unlikely to succeed.
While political leaders continued to demand answers, some of Milei’s allies suggested that he had been scammed by the individuals behind Libra and was unaware of the full details. Hayden Davis, CEO of Kelsier Ventures, one of the firms involved in launching the token, has since stated that Milei was not directly responsible for the fiasco but suggested that individuals close to him may have been involved.
Legal Actions and Investigations
Legal action is underway, with multiple lawsuits filed against Milei. A local Argentine judge has been assigned to investigate more than 100 cases stemming from the controversy. Moyano & Asociados, an Argentine law firm, also filed a complaint with the U.S. Securities and Exchange Commission (SEC).
Max Burwick, a managing partner at Burwick Law in New York, stated that his firm is helping clients who suffered financial losses due to the token’s price fluctuations.
Milei’s Plans Moving Forward
Despite the political and legal challenges, Milei remains focused on his international agenda. He plans to fly to Washington this Wednesday to meet with U.S. President Donald Trump. Milei is seeking Trump’s support for an International Monetary Fund (IMF) program for Argentina, as well as potential exemptions from U.S. tariffs.
As the investigation continues, the full impact of the Libra token debacle on Milei’s presidency remains uncertain.
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